Most likely the bottom is already in for the recent correction. The stock market has rallied strongly the last three days and it looks as if the worst is behind us.

The NASDAQ Composite ran up against powerful resistance today and was unable to overcome it. As the daily gain was over 2% when the index hit this significant resistance, it isn't surprising that it was unable to break above the level. You can notice from the chart that the 61.8% Fibonacci level is at 2636, just a few points over the major resistance area. A sustained break of this area should push the NASDAQ to 2675 and will confirm that a new uptrend has begun.

The S&P 500 is also right below important resistance. The Fibonacci retracement is at 1507, while the horizontal resistance and 50 day moving average sits in the 1510 area. A sustained break of this area should push the index to 1540 and will confirm that the correction has finished.

The Russell 2000 has a bit further to go before we can confirm that the correction is over, but once the NASDAQ Composite and S&P 500 confirm the bottom, we know that the Russell 2000 will eventually follow suit. The Fibonacci resistance of 813 will be the next stopping point, before 820, and eventually 830 and the 50 day moving average. A move to 830 will confirm that the bottom is definitely in.

We cannot say for sure that the correction is over, but it most likely is. It is possible that the market will have a short-term pullback here, but we believe we will be able to confirm the bottom of this correction very soon.